Could Twitter Fly Even Higher?

Twitter

At $18, Twitter (NYSE:$TWTR) is a reasonable buy. However, some analysts are predicting that the company could still move higher.

When CEO Bob Iger of Walt Disney Co. (NYSE:$DIS) passed on acquiring the tech giant last year, it left the company in economic purgatory. Though the company was not ultimately acquired, some are speculating that is not the last acquisition possibility we will hear about. Doug Kass from TheStreet (NASDAQ:$TST), for example, argues that Twitter will eventually be acquired by a bigger company, though the timeline is currently unclear.

Kass cited continuing challenges restricting user growth and the possible involvement of Russian election interferers as possible challenges to the little blue bird.

Both Facebook (NASDAQ:$FB) and Google’s parent company, Alphabet Inc. (NASDAQ:$GOOGL) have recently come under fire for potentially allowing foreign agents to spread fake news over social media with the intention to influence the presidential election. Now, Twitter has also been named as a possible site used in the potential tampering.

Kass also mentioned Twitter’s reliance on the popularity of President Donald Trump’s popular and often controversial twitter account for publicity, which Kass argues is a slippery slope that could change at any moment.

Analysts fear that the Russian probe will result in higher regulation and the additional expenses that those charges naturally incur. Many like Kass forecast that this will hold shares of the company between $17 and $19 for the rest of the year.

But not all hope is lost.

Kass explains that once Twitter absorbs the higher expenses associated with possible government regulation, the shares could continue to grow due to Twitter’s unique service and popularity.

Featured Image: depositphotos/Thomaspajot

About the author: Dylan is a content writer and editor located in Vancouver, British Columbia. He graduated from the University of Regina with BA degrees in both Journalism and History in 2016. His skills include writing, blogging, editing, and developing content for both print and internet media.